If Counselor Realty deems a transferee unqualified, can they deny the transfer?

According to Counselor Realty's 2025 Franchise Disclosure Document, Counselor Realty has the right to deny a transfer if they deem the transferee unqualified. Specifically, Counselor Realty has the right to consent to all transfers, with an exception for transfers of less than a majority interest in the business entity or its owners. Counselor Realty will grant consent if they believe the transferee is qualified and the conditions specified in the Franchise Agreement are met.

This means that if a franchisee wishes to sell their Counselor Realty franchise, the potential buyer must meet Counselor Realty's standards for qualification. These standards are further detailed in Section 9.1 and 9.2 of the Franchise Agreement, which outline the conditions for franchisor approval of a transfer. These conditions include the transferee qualifying, payment of a transfer fee, payment of all outstanding amounts, and renovations to meet the current system standards. Additionally, the buyer's shareholders or owners must execute a guaranty.

This provision protects Counselor Realty's brand and reputation by ensuring that only qualified individuals or entities become franchisees. It also allows Counselor Realty to maintain consistent standards and practices across all of its franchise locations. A prospective franchisee should carefully review Sections 9.1 and 9.2 of the Franchise Agreement to fully understand the criteria Counselor Realty uses to evaluate potential transferees. Understanding these requirements is essential for a franchisee planning to sell their business in the future.